Managed to extend its recovery off......>

EURO-DOLLAR: Managed to extend its recovery off Monday's holiday thinned session

low of $1.0871 to $1.0992 into the 1600BST fix before momentum faded and it

drifted back to $1.0968. However, fresh demand emerged into the dip late Europe

edging it back to $1.0985. Move up fuelled by general risk appetite, in turn

driven by the positive response in US equities to the global easing of COVID-19

economic restrictions, though some suggested move was not as strong as it could

have been due to focus turning to Wednesday's European Commission Recovery Fund

proposal presentation, with Austria, Denmark, Sweden and the Netherlands (the

Frugal Four) out of the 27-member EU known to oppose grants over loans, with a

Visegrad group, consisting of Hungary, Czech Republic, Poland and Slovakia, said

to hold similar views. A lot of negotiating expected ahead of next month's EU

Summit. Like sterling the elements are there to suggest the EUR to come under

pressure, but current risk outlook seen over riding these concerns. Month-end

also approaching with early models suggesting USD sales to be seen.

- Support $1.0970, $1.0950, $1.0915, $1.0890. Resistance $1.0992, $1.1008,

$1.1018.